Appendix
Appendix 1. Scope of Aggregation and Calculation Method for GHG Emissions
GHG emissions are calculated based on the methods published by the Act on Promotion of Global Warming Countermeasures, as well as the Basic Guidelines for Calculating GHG Emissions through the Supply Chain by the Ministry of the Environment and the Ministry of Economy, Trade and Industry. We ensure the timeliness and reliability of the data by using the latest information available at that time.
Scope1 and Scope2
[Domestic]
Two companies, Daiwa Securities and Daiwa Institute of Research, which are required by law to report on the amount of energy consumption and the volume of CO2 emissions. The data for Gran Tokyo North Tower, where Daiwa Securities Group is based, Daiwa Yaesu Building and Daiwa Toyocho Building includes data for Group companies other than those mentioned above.
[Overseas]
London, New York, Hong Kong, Taipei, Singapore, Seoul, Washington D.C., Mumbai and Manila offices.
[Calculation methods]
Calculations have been made in accordance with methods stipulated in the Act on Rationalizing Energy Use and the Act on Promotion of Global Warming Countermeasures. (Disclosed figures have been rounded off to the nearest whole number.) Scope 1 and 2 are calculated based on the GHG emissions according to the usage of the following items:
- Scope 1: Utility gas, Liquified petroleum gas, heavy oil, diesel fuel, kerosene
- Scope 2: Electricity, steam, hot water, cold water
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A) Electricity:
- Market-based) For domestic site, we use the adjusted emission factors* for each electricity supplier based on the Act on Promotion of Global Warming Countermeasures. For overseas site, we use the emission factors published by the respective governments or suppliers at each location.
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Location-based)
We use the emission factors published by Carbon Footprint Ltd.
https://www.carbonfootprint.com/
- B) Utility gas: For domestic site, after consumption is calculated as the volume of gas under normal conditions, and each suppliers' emission factors* or calorific value and the emission factors* specified by law are used to calculate CO2 emissions. For overseas site, same calculation method as domestic. (calorific value and emission factors based on the Act on Promotion of Global Warming Countermeasures.)
- C) Liquefied petroleum gas, heavy oil, diesel fuel, kerosene, steam, hot water and cold water: Calculated on a consumption basis by the emission factors* based on values published by the Ministry of the Environment
- *Uses the emission factors of May 2024.
Scope3
[Scope]
- Category 6: Daiwa Securities Group Inc., Daiwa Securities Co. Ltd., London and Hong Kong Offices
- Category 7: Daiwa Securities Co. Ltd.
- Category 8: Daiwa Securities Group Inc., Daiwa Securities Co. Ltd., and Daiwa Institute of Research Ltd.
[Calculation methods]
Calculated using emission factors from the emission factors database for corporate GHG emissions accounting over the supply chain (Ver.3.2) and IDEAv2.3 (For calculating supply chain greenhouse gas emissions). Disclosed figures have been rounded off to the nearest whole number.
- Category 6: Calculated by multiplying passenger-kilometers involved in overseas business travel (international flights) in the above scope by emission factors.
- Category 7: Calculated by multiplying commuting costs paid by the above scope to officers and employees by emission factors and attendance rate.
- Category 8: The fuel used in leased cars used as company cars in the above scope. Categorized in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain.
The scope and calculation methods will be reviewed as needed, in line with domestic and international guidance and standards.
Appendix 2. Our Approach for Measuring GHG Emissions within Investment and Loan portfolios
We measure financed emissions based on the following basic formula from PCAF.
Basic Formula for Emissions in Investment and Loan Portfolios in PCAF
Financed Emissions = ∑i ①Attribution factor i × ②Emissions i
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